Chapter 1.4, Problem 5A

Name ____________________________________________________________

Due to a variety of factors including fuel prices and adverse weather patterns, the cost of many groceries is expected to increase by as much as 5% per year. Let’s illustrate the effects on consumers using the example of a frozen pizza that currently costs $5.60.

Fill in the table below, which shows the cost of the $5.60 pizza after each number of 5% increases. Thinking about your answer to Question 3 should help make the calculations go quicker.

# of increases New price
1
2
3
4
10